Luka Doncic's extension restrictions have lifted

It has been six months since the Dallas Mavericks sent Luka Doncic to the Los Angeles Lakers in one of the most stunning trades in NBA history. That means that the restrictions limiting Doncic’s first-year salary, annual raises, and total years on a contract extension no longer apply.

Doncic is now eligible to sign a contract extension with the Lakers that would be worth up to a projected $222.4M over four years, beginning in 2026-27.

While that four-year, $222.4M extension is the most lucrative deal Doncic could lock in at this time, it may ultimately be in his best interests financially to sign a shorter-term deal. If he agrees to a three-year, $160.8M contract that includes a third-year player option, he’d have the ability to start his next contract in 2028, when he’ll have 10 years of NBA experience and would qualify for a maximum salary worth 35% of the cap instead of his current 30%.

“The [two]-plus-one structure is the smartest move for a player in Luka’s position,” one veteran agent told Grant Afseth of FastbreakJournal.com. “It gives him the flexibility to hit that 10-year mark when he can sign a super-max. If I had to guess, that’s what I expect him to do. That’s what I’d advise.”

The Lakers would presumably be thrilled to get Doncic’s signature on any contract to ensure that their newest superstar won’t have the ability to reach free agency next summer. His current deal will pay him about $46M in 2025-26, and he holds a player option worth roughly $49M for 2026-27. An extension would likely replace the option, since his new maximum for ’26-27 projects to be worth $49.6M based on the NBA’s estimated 7% cap increase.

As Khobi Price of The Orange County Register writes, all signs in recent weeks have pointed to Doncic and the Lakers working out a new deal. The former Maverick helped recruit free agents Deandre Ayton and Marcus Smart and has spoken about a desire to continue his career in Los Angeles.

“He obviously didn’t ask for the trade, but he’s embraced it as much as the Lakers could have hoped,” one assistant general manager of a Western Conference team told Afseth. “He’s clearly invested in the team if he’s putting in work to help recruit Smart and Ayton. You don’t recruit like that unless you’re planning to stay a while.”

There was some speculation earlier this summer that a new contract for Doncic might not get done until later in the offseason, once his obligations to the Slovenian national team had wrapped up. However, it now looks like there will be an opening for a deal to get done as soon as this weekend — Doncic is making a stop in Los Angeles as part of a week-long U.S. tour for Jordan Brand before he heads back overseas for this year’s EuroBasket tournament.